Can I Buy Another House After A Foreclosure?

One of the most popular questions people who have more debt than they can handle is what will happen if they file bankruptcy, or lose their house to foreclosure. These are valid concerns, because it is always important to have a good credit score, so you have access to funds when the need arises. And because we all know that things like bankruptcy and foreclosure have an impact on our credit, it is natural to wonder just how much of an impact these things have on our future finances.

You might even be wondering if you will ever be able to buy another house if you have lost one to foreclosure already. Generally speaking, the answer is yes, but here are some words of caution you need to know:

•         The interest rate you get may be higher than what you are used to, which will make your payments higher. This makes it critical to buy only as much house as you can afford, and not overextend yourself with a new house purchase.

•         You will probably not be able to buy a house right away, and will first need to rebuild some credit in order to get a loan.

•         The down payment you make might be more than what you have paid in the past, because the lender may want more up front as an assurance that the loan will be repaid. Take your time to save enough for a healthy down payment, and to find the house that is just right for your budget.

While a foreclosure, or even a bankruptcy, affects your credit all is not lost. In most instances people who have gone through a bankruptcy or been foreclosed on begin to receive credit offers a few short months after the fact. Depending on the state of your finances, it can be a good idea to accept these offers as a way of starting to raise your credit score again. Just be sure you can make the payments and that you do not take out more loans or take on any new credit that you are not able to repay.

For more information about foreclosures, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you soon.